Practical tip: Parent company financial information when the registrant has a consolidated shareholders’deficit (No. 2014-03)

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Practical tip 06/04/2014 by Assurance services
Practical tip: Parent company financial information when the registrant has a consolidated shareholders’deficit (No. 2014-03)

At a glance

This Practical tip provides guidance on how to calculate the threshold for parent company financial information when the registrant has a consolidated shareholders' deficit.

SEC rules require a financial statement schedule containing condensed parent company-only financial information if the restricted net assets of consolidated subsidiaries exceed 25% of consolidated net assets as of the end of the most recently completed fiscal year. This Practical tip discusses this guidance and focuses on how to determine materiality in situations where a registrant has a consolidated shareholders' deficit.